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Wells Fargo Tops 2Q Estimates

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    FBN’s Diane Macedo breaks down the stories moving the markets ahead of the trading day.

  • Duration 5:46
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-- -- -- -- -- On the -- -- Good morning everyone JPMorgan Chase release its second quarter earnings this morning in the company reported -- net income.

A five million dollars or -- dollar 21 per share.

That's down from last year's one dollar 27 cents the second quarter results including a four point four billion dollar pretax trading loss.

From the company's chief investment office revenue came in at 22 point nine billion dollars which was better than expected.

And fox business's Adam Shapiro is outside the bank's headquarters in New York with more on that -- the bank has been holding.

It's conference call what's the latest on that.

And Jamie Dimon answering questions from all kinds of banking analysts about that four point four billion dollar loss.

The most important thing is that he is saying this is an isolated incidents -- is Jamie Dimon in his own words.

Yes freeloading -- and a lot of additional risk people thought traders.

Financial officers to help -- is this Euro area and they.

-- would top the bottom all the government reporting -- 600 and CIO.

We do believe -- guys are isolated CIO.

Why it's important for -- on to say this is isolated is they have restated their first quarter earnings raising the possibility that.

Perhaps some kind of fraud was committed by traders have not been identified who -- led the bank gets to the actual marks on the bonds in the different assets that were at the heart of the trading losses.

This is the exact quote from the press release and earnings report.

The firm recently discovered information that raises questions about the integrity of the -- -- at suggests that certain individuals may have been seeking to avoid.

Showing the full amount of the losses in the portfolio during the first quarter.

That I and they also have been talking about our earnings report.

And some of the analysts wanted to know why JPMorgan Chase although Jamie Dimon is -- the -- doesn't like to do this accounting maneuver.

Did -- doesn't like to do they moved two point one billion dollars from their loan loss reserves over to the other side to make things look a little bit better they also took a 755 million dollar -- Dead valuation adjustment it is an accounting maneuver again to make things look better.

So he said Jamie -- when asked why were you doing this that he's just the same conservative accounting methods they've always used as an investor the question for you is.

Do you agree.

I am right.

That's out of Shapira live from the headquarters there we appreciate -- thanks.

And Wells Fargo says it earned a record net profit of four point six billion dollars or 82 cents a share.

That's a penny more than the street's estimate and it's up 17%.

From a year ago.

The bank says mortgage banking income was strong as borrowers continue to refinance their homes at low rates but revenue of 21 point 29 billion missed the estimate.

Of 21 point 37 billion shares are trading lower in the premarket.

Lexmark shares are also tumbling after the company slashed its second quarter outlook the printer makers forecasting adjusted profit of 87 to 89 cents a share.

Down from its previous guidance of 95 cents to a dollar five cents.

We -- there was for 98 cents a share sales for the current quarter are expected to fall 12% from a year ago compared with the earlier estimate.

A seven -- 9%.

Lexmark blames the impact of exchange rates and weaker than expected demand in Europe.

Producer prices though rose more than expected in June increasing.

By point 1% from may.

The -- driven by gains in consumer goods like household appliances light trucks and pet food the expectation was for a decline of point 5%.

The so called core index which factors out food and energy was up point 2% and that was right in line with the expectation.

-- less than thirty minutes away from the opening bell on Wall Street taking a look at futures and now markets are digesting all that news we're seeing green arrows across the board.

Though they are off earlier highs Dow futures are up by 28.

The S&P is up by two and the nasdaq's up by about six.

New documents reveal that Treasury Secretary Timothy Geithner pressed the Bank of England in 2008.

To -- -- the key interest rate that's now at the center of an international banking scandal.

Geithner sent a note to the BOE while he was head of the New York fed.

Outlining six changes he felt would improve the credibility and integrity of Libor.

-- -- influences rates on a number of consumer products including mortgages student loans.

And credit cards and many people are affected by this.

-- those documents also revealed US regulators began discussing concerns related to possible manipulation of Libor around that time.

Meanwhile twelve senate Democrats have called on the Justice Department and federal banking rate regulators.

To pursue a civil and criminal probe against bankers who might have unlawfully manipulated the rate.

Darden Restaurants is buying -- art house USA for 585.

Million dollars in cash.

In a bid to attract younger and wealthier diners Darden which operates red lobster and olive garden says yard house restaurants will become part of its specialty restaurant group.

Which includes the capital grille and bahama breeze shares of -- fell in extended trading after the company said profits would initially dropped because of the deal.

And that it would trim its share buyback plan to help pay for it California based yard house is known for its wide variety of Beers and big restaurants that play rock music.

Bain Capital is reportedly in advanced talks with Singapore's government to make a joint bid for a 40% stake in Genpact -- ninety outsourcing company.

Reuters says the deal involving -- and Singapore's government investment vehicle is valued at one point five.

22 billion dollars.

Let's take a look at commodities oil and gold are both to the upside.

Imus in the morning continues right now on Fox Business giving you the power of problem.

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